4. What Happens If Congress Fails, And We Fall Over The Fiscal Cliff?

It would be bitter medicine. A recession would begin in the first half of 2013, reducing U.S. economic growth by about 0.5%. Unemployment would increase. The jobless rate would rise to 9.1% by Dec. 2013 from 7.9% today.

Yet, it would somewhat cure the country. The budget deficit would fall to $200 billion by 2022 from $1.1 trillion today; debt/GDP would fall to 58%.